Last Updated on May 22, 2023 by Bitfinsider
The Tornado Cash token (TORN) is up 10% following a proposal to undo malicious modifications to the decentralized autonomous organization’s (DAO) governance state was made by a wallet address connected to a recent attack on the DAO.
User Tornadosaurus-Hex stated in the Tornado Cash community forum that “the attacker posted a new proposal to restore the state of governance,” adding that there is a “good chance” that the attacker would carry it out.
According to Tornadosaurus-Hex, the attacker is setting back to zero the TORN tokens they awarded themselves, which gives them a disproportionate number of the governance votes.
Although it’s unclear when the action will be carried out, it appears as though the request will be approved after voting closes on May 26 given the attacker’s holdings of TORN governance tokens. The governance of Tornado Cash’s DAO will return to token holders if the proposal is approved, removing the harmful code that the attacker inserted into the protocol to enable them to steal other users’ voting power.
Data from CoinGecko shows that as a result, TORN increased by as much as 10% before declining once more. Active TORN community member 0xdeadf4ce suggested that this may all be a “gigatroll” to lower the token’s price and grow their holdings at a loss. Tornadosaurus-Hex said, “We don’t even have a choice in regards to this proposal, but it is still important.”
In contrast to hacks where the attacker breaks code rather than exploits it, structural attacks on DAOs and DeFi protocols have led to charges. However, the perpetrator of this exploit is probably banking on the fact that Tornado Cash was recently listed as a sanctioned company.
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